Trump White House Rescinded Federal Grant Freeze After Confusion/ Newslooks/ WASHINGTON/ J. Mansour/ Morning Edition/ The Trump administration has rescinded an order that froze federal grants and loans, just two days after its implementation caused nationwide confusion and legal challenges. The Office of Management and Budget (OMB) issued a brief notice on Wednesday, withdrawing the freeze that had disrupted state programs, schools, and organizations reliant on federal funding. The White House initially blamed the media for misinterpreting the directive but faced intense backlash from lawmakers and state officials. The reversal follows a federal judge’s decision to temporarily block parts of the freeze.
Trump Administration Rescinds Federal Grant Freeze: Quick Looks
- Order Reversed: The White House budget office officially rescinded the funding freeze, stating it had caused unnecessary confusion.
- Backlash from Lawmakers: Democrats and state officials pushed back, calling the move reckless and harmful.
- Judicial Intervention: A federal judge temporarily blocked the aid freeze before the administration withdrew it.
- White House Response: Officials blamed the media for overreacting, despite widespread confusion among state agencies.
- Impact on Programs: Schools, public health programs, and infrastructure projects faced uncertainty before the reversal.
Trump White House Rescinded Federal Grant Freeze After Confusion
Trump White House Reverses Federal Aid Freeze After Public Outcry
Confusion Over Aid Freeze Leads to Swift Reversal
On Monday evening, the White House Office of Management and Budget (OMB) issued an unexpected directive that paused all federal grants and loans, citing the need to review funding under new administration priorities.
The order caused widespread uncertainty, as state governments, schools, and public programs scrambled to determine whether their funding was affected.
White House Withdraws Order After Mounting Pressure
By Wednesday, the Trump administration walked back the decision, issuing a two-sentence notice to federal agencies stating:
“OMB Memorandum M-25-13 is rescinded. If you have questions about implementing the President’s Executive Orders, please contact your agency General Counsel.”
The reversal followed strong criticism from lawmakers, including Sen. Patty Murray (D-WA), who called it a “combination of sheer incompetence, cruel intentions, and disregard for the law.”
Legal Challenges and Congressional Pressure
On Tuesday afternoon, a federal judge temporarily blocked part of the grant freeze, adding to the political and legal pressure on the White House.
- State governments and lawmakers flooded the administration with calls demanding clarity.
- Multiple federal agencies were left unsure how to proceed with ongoing funding commitments.
- The White House initially defended the order, but ultimately rescinded it amid the backlash.
White House Response: Media to Blame?
Despite the confusion, White House officials claimed that the media exaggerated the impact of the funding freeze, insisting that “no confusion existed within the administration.”
However, the flood of calls from lawmakers and state officials contradicted that claim, showing widespread concern over funding for critical programs.
Final Thoughts: Policy Reversal Highlights Tensions Over Federal Spending
- The freeze was lifted, but uncertainty remains over how future funding decisions will be handled.
- State and local governments will continue watching closely to see if the administration attempts similar measures.
- Legal challenges may persist, especially as courts review the limits of executive power over federal funding.
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